Photo courtesy of U.S. Steel Corp.
Pittsburgh-based United States Steel Corp. has reported first-quarter 2022 net earnings of $882 million, or $3.02 per diluted share. That compares with first-quarter 2021 net earnings of $91 million, or 35 cents per diluted share, representing a nearly 870 percent year-on-year increase.
“It was another quarter of records at U. S. Steel with the continued demonstration of the power of our ‘Best for All’ strategy,” says U. S. Steel President and CEO David B. Burritt. “The team’s stellar performance drove our best-ever first-quarter results, despite the challenging global dynamics that emerged throughout the quarter.”
Referring to the company’s Big River Steel electric arc furnace (EAF) mill in Arkansas and other scrap-melting EAF plants, Burritt comments, “Our minimill segment delivered 38 percent earnings before interest, taxes, depreciation and amortization (EBITDA) margins, outperforming both minimill and integrated peers.”
Looking ahead, Burritt comments, “We currently expect the second quarter to be the company’s all-time best second quarter as our balanced customer portfolio, raw materials integration and operating leverage is expected to expand adjusted EBITDA and support another quarter of strong EBITDA margin and cash generation. We believe U. S. Steel is well positioned to earn a significantly higher multiple as we demonstrate improved earnings performance, higher free cash flow, increasing direct returns to stockholders and outstanding leadership in innovation and research and development.”
The CEO says the company’s Best for All strategy remains viable. “Today’s geopolitical uncertainty and elevated raw material cost environment reinforces to customers the importance of steel that is mined, melted and made in the U.S.A. Our iron ore mines are a unique competitive advantage that cannot be easily replicated by other competitors. Additionally, we continue to progress on our sustainability goals and deliver the ‘green’ products our customers are increasingly demanding. We are also demonstrating our environmental, social and corporate governance (ESG) leadership. Earlier this year, Big River Steel became the first North American steel facility certified by [Australia-based] ResponsibleSteel. This is independent affirmation of our commitment to ESG excellence and sustainable processes and products.”